In 1907 an order was placed with Logan Bros of Auckland to construct a twin-screw, wooden ferry to carry 400 passengers at 9.5 knots. Under Captain Paterson, she arrived in Otago Harbour on 18 December 1908, already vastly superior to any previous ferry on the harbour. She had two cabins (male and female), both furnished with the latest fittings of the period, and the drop-down side windows enabled the interiors to be airy in fine weather. The upper deck had seats ranged around the side rails, and electric light was installed throughout. She ran her first trip two days after arriving, on the 20th December. She soon became very popular with Peninsula residents. On 15 April 1909 she arrived in Portobello from Dunedin and discharged her passengers at 6.30pm. The crew slept on board: at about 1.30am a deckhand discovered a fire had a strong hold by the engine room. He rushed aboard the 'Moerangi' to arouse its crew, and tried to douse the flames. Being unsuccesful, the 'Moerangi' towed the burning 'Matariki' towards deeper water in Potobello Bay, so that she might be scuttled to extinguish the fire. However, she struck a sandbank, where she remaind and burnt to the water's edge. The engines and boilers were removed, reconditioned, and used in the 'Waikana'.